Fortis, controlled by Indian billionaire brothers Malvinder Singh and Shivinder Singh, is also in talks to hire RBS (RBS.L) to help raise funds, said the sources, who declined to be identified as the matter is not yet public.
Hopes of Fortis Healthcare (532843.BY) launching general offer for Parkway Holdings (P27.SG) may continue to underpin interest in latter’s share price, says Dow Jones.
Stock is up 1.3% at $3.82 following Fortis’ plan to raise INR27.50 billion ($828 million) via sale of its own securities.
Company has also raised separate INR3.8 billion via share placement to Lathe Investment, unit of Government of Singapore Investment Corp.
Fortis currently owns over 25% of Parkway, which also sought after by Malaysian sovereign wealth fund Khazanah.
“We believe this fund raising is for a potential general offer for Parkway,” says UBS, which has Buy call with $4 target, “we believe the arrival of Fortis as a shareholder and the offer from Khazanah shows that Parkway is a valuable franchise.”
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“This means Fortis is keeping the warchest ready if it has to make an open offer,” said Ranjit Kapadia, an equities analyst with HDFC Securities, adding it was not clear whether Fortis will actually make an open offer.
Singapore’s benchmark Straits Times Index rose 0.47% to 2,752.60 points on Monday. US financial markets were closed for holiday on Monday.
Parkway Holdings (PARM.SI) is expected to be in focus on Tuesday as a tussle for control of Singapore’s biggest healthcare group between Malaysian wealth fund Khazanah and India’s Fortis Healthcare (FOHE.BO) drags on. Parkway Holdings shares jumped 25% on Monday after Malaysian sovereign fund Khazanah offered US$835 million ($1.2 million) for control of Parkway, leaving Fortis Healthcare to make the next move in a potential takeover battle. Fortis, which bought into Parkway in March and owns about 25% of the firm, must now decide whether to sell its shares or make a counterbid for all of Parkway, which it had hoped to use as a springboard for global expansion.
India’s Fortis Healthcare (FOHE.BO) has bought more shares in hospital operator Parkway (PARM.SI), setting the stage for a possible battle with Malaysian state investor Khazanah for the Singapore firm.
Fortis Healthcare, India’s fastest-growing healthcare company, has announced the acquisition of a 23.9% strategic stake in healthcare service provider Parkway Holdings from TPG Capital (formerly Texas Pacific Group).
Parkway has a network of 16 hospitals having 3,400 beds spread over six countries, including India. The deal size is estimated to be about US$685.3 million ($959.4 million).
